One of the Big Four accounting firms is hemorrhaging leadership after audit partners allegedly misused confidential client information to win new business

KPMG Australia’s chairman Martin Sheppard and two additional partners are leaving the firm as the fallout from a whistleblower scandal continues to dismantle its leadership ranks. The departures mark the latest chapter in a crisis that has already claimed the firm’s CEO and its head of audit.

The scandal centers on allegations that KPMG audit partners accessed confidential board papers from Lendlease, a long-standing client, and used that information to gain a competitive edge when pursuing audit contracts with other major firms.

How the scandal unfolded

A whistleblower first raised concerns internally in 2024. Those concerns didn’t reach the public until March 24, 2026, when Senator Deborah O’Neill brought the allegations to light. KPMG itself acknowledged on May 29, 2026, that it had fallen short in how it treated the whistleblower.

The allegations extend beyond Lendlease. Claims of improper access to documentation from Macquarie Group and Westpac trace back to 2023.

On May 29, CEO Andrew Yates resigned, along with audit head Julian McPherson. Stan Stavros was named interim CEO. Australia’s corporate regulator, ASIC, initiated a formal investigation into three KPMG partners around June 5, 2026.

The client fallout is real

Westpac, one of Australia’s largest banks, is reportedly considering dropping KPMG as its auditor....

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